Rupee declines for 4th consecutive session, settles at 73.07 against the dollar
Continuing its losing streak for the fourth consecutive session, the rupee fell one paise against the US dollar on Friday, June 11, to stand at 73.07 amid a strengthening US dollar and rising prices. crude oil price. In the interbank forex market, the local unit opened at 72.97 against the dollar in the middle of its previous close of 73.06 and hovered between 72.91 and 73.09 during the day. National unity has lost 27 paise in the past four trading sessions.
On a weekly basis, the local unit fell eight paise against the dollar. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.15% to 90.21. On Thursday 10 June, the rupee slipped nine paise to settle at 73.06 against the greenback. On Wednesday, June 9, the local unit fell eight paise against the dollar to settle at 72.97.
“The focus is now on the big final event, the Fed meeting next week, although there may not be much change in the rhetoric. If the Fed is hinting that the discussion on the reduction could be closer than before, an instinctive push can be seen in the spot USDINR, but the Fed will not rush to tighten the stimulus, so overall the dollar will remain weak, ” said Mr. Rahul Gupta, Head of Currency Research, Emkay Global Financial Services.
The larger influx into the domestic stock market could limit the pair’s rise for some time and the continued one-off intervention from RBI could limit the decline to 72.50-70 levels. Overall, we expect the USDINR pair to trade in the narrow range of the 72.50-73.20 area before a large trigger gives a breakout on either side. However, the chances of a breakout of the top are higher because the RBI buy point, the forward sell swap could not allow a further decline, ”said Amit Pabari, MD, CR forex.
On the national stock market front, the BSE Sensex finished up 174.29 points or 0.33% at 52,474.76, while the broader NSE Nifty index rose 61.60 points or 0 , 39% at 15,799.35.
“Following the decline in Covid cases, Indian stock markets have remained resilient this week. BSE Sensex and Nifty 50 continued to set records during the week. BSE Sensex and Nifty 50 both rose 0.8% each over the week. The market rally remained widespread with a strong recovery seen in the BSE Midcap and BSE Smallcap indices. The majority of sector indices have moved in the positive direction, ” said Shrikant Chouhan, executive vice president of technical equity research at Kotak Securities.
According to provisional data, foreign institutional investors (FIIs) remained net buyers in the capital markets as they bought shares worth Rs 1,329.70 crore on June 10. Futures on Brent crude, the world’s benchmark for oil, rose 0.22% to $ 72.68 per barrel. .